Question

Question 25

Which of the below components does NOT form part of a withdrawal in a circular flow of production, income,
and spending?
A. All companies' resident in South Africa are obligated to pay Corporate Income Tax
B. Solar panel imports from China quadrupled in the first half of 2023
c. According to research South African consumers are putting money away for rainy days but mainly for
food and funerals.
D. South African agricultural exports were up for the third consecutive year in 2022
(4

Answer 1

Withdrawals in a circular flow of production, income, and spending include savings, taxes, and imports. Agricultural exports, on the other hand, represent an injection or inflow of money into the economy.

Step-by-step explanation:

In a circular flow of production, income, and spending, a withdrawal refers to any leakage or outflow of money from the economy. The components that form part of a withdrawal include savings, taxes, and imports. However, option D, which states that 'South African agricultural exports were up for the third consecutive year in 2022,' does not represent a withdrawal. Instead, it represents an injection or inflow of money into the economy.

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